Source + trust record
Source checked as of September 18, 2026. Primary authority: EDD WSD20-03, current Uniform Guidance, and later federal-adjustment guidance.
Check result: WSD20-03 remains active California audit guidance. For fiscal years beginning on or after October 1, 2024, the federal Single Audit expenditure threshold is $1 million. Entities below that threshold still remain subject to recordkeeping, internal-control, allowable-cost, subrecipient-oversight, and other audit or monitoring requirements. Current Uniform Guidance supersedes older dollar thresholds embedded in historical materials. This AI-assisted brief does not receive human legal or compliance review. Official sources control.
WDB decision strip
| STATUS | ACTION | PRIMARY OWNER | CURRENT TIMING | IMPACT |
|---|---|---|---|---|
| FINAL · ACTIVE | COMPLETE AUDIT + FOLLOW-UP | Fiscal + Executive Leadership | Each fiscal year and after findings | Single audit · Financial statements · Findings · Corrective action |
The bottom line
Audit compliance starts with year-round grant accounting, subrecipient oversight, and record quality, not with the auditor’s fieldwork. Local Areas should know whether the current federal single-audit threshold applies, submit required reports on time, and track every finding through corrective action and audit resolution.
Audit compliance starts before the audit—with accurate award tracking, subrecipient oversight, financial controls, and a clean Schedule of Expenditures
WSD20-03 summarizes audit requirements for organizations administering WIOA and other covered federal workforce funds. It is most useful as a fiscal-governance guide: determine whether the organization meets the current Single Audit threshold, prepare complete federal expenditure information, submit required reports, and ensure subrecipients also meet applicable audit obligations.
At a glance
Issued
October 13, 2020
Framework
Uniform Guidance
Current Single Audit threshold
$1 million
Related policy
WSD22-06 Audit Resolution
Executive takeaway
For fiscal years beginning on or after October 1, 2024, the federal Single Audit threshold is $1 million in federal awards expended. The older threshold in historical guidance should not be used. Entities below the threshold are still responsible for records, internal controls, allowable costs, and any other audit or monitoring requirements that apply.
What the audit file should connect
- Federal awards and assistance listings to the general ledger.
- Grant expenditures to the Schedule of Expenditures of Federal Awards.
- Subrecipient awards to monitoring and audit follow-up.
- Internal controls to actual fiscal and program operations.
- Audit findings to corrective action and debt resolution.
Threshold update: The current $1 million Single Audit threshold supersedes the lower dollar amount reflected in older versions of audit guidance.
Operational considerations for Local Boards
- Confirm whether the recipient and each subrecipient meet current audit thresholds.
- Reconcile WIOA expenditure records to the entity’s federal award schedule before year-end.
- Track audit-report submission and findings for subrecipients as part of risk-based oversight.
- Coordinate fiscal, monitoring, and contract staff on corrective actions.
- Pair this directive with WSD22-06 for audit resolution and WSD22-07 for debt collection.
Source basis
Primary source: EDD WSD20-03 — Audit Requirements
Current-context note: Current Uniform Guidance and later federal-adjustment guidance control the audit threshold and any subsequently revised federal requirements.